Key facts
- Spain is fostering closer ties with China, with Shanghai serving as the city of honor at Barcelona's La Merce festival.
- Spanish Prime Minister Pedro Sanchez has visited Chinese President Xi Jinping four times in four years and advocates for improved EU-China relations.
- Germany and France are pushing for a more aggressive EU approach to China, aiming to block subsidized Chinese competitors.
- Critics accuse Spain of prioritizing national economic interests over broader European concerns.
- Chinese investment in Spain has doubled in the past year, particularly in battery gigafactories and car plants.
- Spain's Ministry of the Interior awarded Huawei a €12.3 million contract to manage sensitive judicial wiretap data.
Spain is cultivating closer ties with China, a move that is generating friction with some of its European Union partners. Shanghai was recently honored as the city of honor at Barcelona's La Merce cultural festival, a significant event that saw Chinese performers integrated into traditional Catalan celebrations. Shanghai Vice Mayor Lu Shan attended the opening ceremony, remarking on the shared spirit between Chinese and Catalan cultures.
Spanish Prime Minister Pedro Sanchez has made multiple visits to Chinese President Xi Jinping and has been advocating for the EU to improve its relationship with China, particularly since Donald Trump's re-election. This stance has reportedly caused resentment among other EU members who perceive Beijing as a strategic rival and a potential threat. Concerns have been raised that Spain's open market approach to Chinese businesses could be allowing China to gain an economic foothold within the bloc.
Other EU leaders are also seeking strategic partners amid global volatility and perceived unpredictability from the US under President Trump. This has led some EU states to prioritize their national interests, even if it strains relations with fellow member states. Germany and France, the EU's largest economies, are reportedly aligning on a more assertive policy toward China, seeking to empower Brussels to exclude subsidized Chinese competitors from the EU market to address significant trade imbalances. The European Commission estimates these imbalances amount to approximately €1 billion per day.
Furthermore, some EU countries are concerned about China's close relationship with Russia, despite Beijing's denials of aiding Moscow's war effort in Ukraine. Defense experts suggest China's technological and economic support enables Russia's sustained military operations.
Victor Cortizo, a lawyer and academic specializing in Sino-Spanish relations, suggests that Spain is legitimately pursuing its national interests through "realpolitik." He notes that Chinese investment in Spain has doubled in the past year, driven by sectors like battery gigafactories and car plants. Cortizo believes Spain could become Beijing's preferred European investment destination, especially as Hungary's pro-China stance has shifted. While the US remains Spain's largest single foreign investor, net investment has declined, and a recent Pew Research Center poll indicated a more favorable view of China than the US among Spaniards.
Critics, however, worry that Chinese factories in Spain could weaken the EU's single market and potentially serve as a way to circumvent EU tariffs on Chinese electric vehicles. Companies like Hithium and CATL are planning significant investments in battery manufacturing in Spain. Additionally, a contract awarded by Spain's Ministry of the Interior to Chinese tech giant Huawei for managing sensitive wiretap data has raised security concerns among European Parliament members, who fear it could compromise EU intelligence sharing.